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Exhibit 99.1
TranSwitch Corporation News Release
TranSwitch Corporation Sells $400 Million of 4.5% Convertible Notes
(Shelton, CT) September 7, 2000-TranSwitch Corporation (NASDAQ:TXCC) announced
today that it agreed to sell $400 million of 4.5% convertible notes due 2005 in
a private placement.
The notes will be convertible into TranSwitch's common stock at a conversion
price of $61.92 per share. The Company has granted the initial purchasers of
the notes a 30-day option to purchase an additional $60 million principal amount
of the notes. The placement of the notes is expected to close on September 12,
2000.
The Company intends to use the net proceeds of the anticipated offering for
general corporate purposes, including working capital. In addition, the Company
may use a portion of the net proceeds to acquire or invest in complementary
businesses, products or technologies if the opportunity arises.
This announcement is neither an offer to sell nor a solicitation of an offer to
buy any of these securities. The notes and the common stock issuable upon
conversion of the notes have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), or any state securities laws. Unless
so registered, the notes and common stock issued upon conversion of the notes
may not be offered or sold in the United States except pursuant to an exemption
from the registration requirements of the Securities Act and applicable state
securities laws.
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Forward-looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Investors
are cautioned that all forward-looking statements regarding TranSwitch and its
operations involve risks and uncertainties, including without limitation risks
of dependence on third-party VLSI fabrication facilities, intellectual property
rights, and litigation; risks in technology development and commercialization;
risks in product development and market acceptance of and demand for
TranSwitch's products and products developed by TranSwitch's customers; risks of
downturns in economic conditions generally and in the telecommunications and
data communications markets and the semiconductor industry specifically; risks
associated with competition and competitive pricing pressures; risks associated
with foreign sales and high customer concentration; risks associated with
acquiring new businesses; risks of failing to attract and retain key managerial
and technical personnel; and other risks detailed in TranSwitch's filings with
the Securities and Exchange Commission.
For more information contact:
Michael F. Stauff, Chief Financial Officer, or
Michael McCoy, Vice President and Controller
TranSwitch Corporation
Phone: 203/929-8810
Fax: 203/926-9453
